A smart grid is an electrical grid that uses information and communications technology to gather and act on information, such as information about the behaviors of suppliers and consumers, in an automated fashion to improve the efficiency, reliability, economics, and sustainability of the production and distribution of electricity. Various Demand Response programs offer incentives to electricity users to reduce their power use in response to a utility's need for power due to a high, system-wide demand for electricity or emergencies that could affect the transmission grid. In Smart Grid, the demand response is adjusting the load as per the supply variations. The present demand response programs by various utility companies are following different strategies such as few of them inform customers about the peak pricing and customer at their end reduce the consumption of power to enjoy benefits from utility companies. In an another instance, the utility companies have control on the smart thermostats for high energy consuming appliances with some incentives to the customers by participating in the demand response programs. In yet another instance, distributed renewable energy (DRE) is present at customer premises which contributes to the demand response program. In the concept of micro grid, the customer has a choice to send excess renewable energy back to the grid due to availability of two way communication. All the above mentioned instances brings a basic problem of selection from utility side in the system from the stability point of view in near real time which includes selection of appropriate energy source to obtained the required amount of energy to meet the specific demand. Majority of the time the amount of the energy which can enter the main Grid or smart grid is defined by some policy or the demand which makes difficult to select the power provider as the power is provided by different providers is not same. Some may provide at W1 and some other may provide at Wn power to the grid based on the time at which it is inputting the power to the grid. In a case wherein the number of providers are many and provides different amounts of power, it becomes difficult to select which among N number of providers will sum up to the required power demand. Yet another problem is matching the supply demand in power grid. The problem becomes complex due to customer participation, renewable energy sources at customer premises, distributed generation from disparate or similar power sources and availability of two way communication. The existing technologies limit in terms of providing solution in near real time for selection of resources to meet the specific demand.
In view of the foregoing discussion, there is a need for a method and system to provide solution in near real time for selection of power sources to meet the specific demand.